Deonis Kiro, Ranchi V. DCIT, CC-3, Ranchi, Ranchi

ITSSA 16/RAN/2015

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8281 (ITAT-RANCHI)
• Duration Of Justice: 4 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 02-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 05-06-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: INDERJEET SINGH
• Keywords: Unexplained investment
• Section: 143(3); 153A; 201; 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER IT (SS) A NO. 16 & 17 / RAN / 201 5 ASSESSMENT YEARS :2008-09 & 2009-10 SRI DEONIS KIRO MERRY HOUSE, SHUKLA COLONY, HINOO, RANCHI- 834002, [ PAN NO.AEMPK 2929 Q ] V/S . DCIT, CENTRAL CIRCLE- 3, RANCHI /APPELLANT .. / RESPONDENT /BY ASSESSEE SHRI DEVESH PODDAR, ADVOCATE /BY RESPONDENT SHRI INDERJEET SINGH, CIT-DR /DATE OF HEARING 02-03-2020 /DATE OF PRONOUNCEMENT 02-03-2020 / O R D E R PER BENCH (ORAL):- THESE TWO ASSESSEES APPEALS FOR ASSESSMENT YEARS 2008-09 AND 2009-10 ARISE AGAINST THE COMMISSIONER OF INCOME T AX (APPEALS)-3 PATNAS SEPARATE ORDERS; BOTH DATED 25.05.2015 PASSED IN CA SE NOS.380, 381/CIT(A)3/2009-1016, RESPECTIVELY INVOLVING PROCE EDINGS U/S 153A R.W.S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. HEARD SHRI DEVESH PODDAR LEARNED AUTHORIZED REPRES ENTATIVE AND SHRI INDRAJEET SINGH, REPRESENTING REVENUE. CASE FILES PERUSED 2. WE NOTICE AT THE OUTSET THAT THIS IS SECOND ROUN D OF PROCEEDINGS IN BOTH THE CASES. THIS TRIBUNALS EARLIER ORDER DATED 18.0 4.2016 HAD DECIDED THE MAIN CASE ITSELF. THE ASSESSEE THEN FILED MISCELLANEOUS APPLICATION(S) MA(S) NO.6 & IT(SS)A NO.16-17/RAN/2015 A.YS. 2008-09 & 2009-10 SRI DEONIS KIRO VS. DCIT CC-3, RANCHI PAGE 2 7/RAN/2017 POINTING OUT CERTAIN APPARENT MISTAKES. LEARNED CO-ORDINATE BENCHS ORDER DATED 28.02.2018 ACCEPTED THE SAME FO R THE PURPOSE OF DECIDING THE ASSESSEES 2 ND TO 5 TH 8 TH SUBSTANTIVE GROUNDS IN AY 2008-09 AND 6 TH , 7 TH AN 10 TH TO 11 TH SUBSTANTIVE GROUNDS AFRESH; RESPECTIVELY. IT IS IN THIS BACKDROP OF FACTS THAT WE ARE NOW PROCEEDING TO DEA L WITH ASSESSEES FOREGOING SUBSTANTIVE GROUNDS. 3. COMING TO FORMER AY 2008-09 INVOLVING IT(SS)A NO . 16/RAN/2015, LEARNED COUNSEL INVITED OUR ATTENTION TO THE ASSESS EES SECOND SUBSTANTIVE GRIEVANCE CHALLENGING BOTH THE LOWER AUTHORITIES A CTION TREATING HIS ALLEGED AGRICULTURAL INCOME OF RS.42,800/- AS INCOME FROM OTHER SOURCES . HIS ONLY CASE IS THAT THIS ASSESSEE HAS INDEED DERIVED AGRIC ULTURAL INCOME FROM LANDS MEASURING ABOUT 30 ACRES IN THE NAME OF HIMSELF AND OTHER FAMILY MEMBERS. THERE IS NO SUCH RECORD FORTHCOMING FROM THE CASE F ILES TO THIS EFFECT BEFORE US. LEARNED COUNSEL WISHES NOT TO PRESS THE INSTANT ISSUE ANY MORE PROVIDED THE ASSESSEE IS GRANTED TELESCOPYING BENEFIT QUA THE IMPUGNED SUM. WE THUS ACCEPT THE FOREGOING PLEA AND AFFIRM THE IMPUGNED D ISALLOWANCE. 4. THE ASSESSEES THIRD SUBSTANTIVE GRIEVANCE CHALL ENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION ADDING ALLEGED F IXED AND OTHER DEPOSITS OF RS.4.95 LAKHS MADE IN THE NAMES OF HIS WIFE, BROTHE R ETC. AS HIS UNDISCLOSED ALLEGED INCOME. WE FIND THAT ALL THESE FAMILY MEMBE RS HAVE BEEN INDEPENDENTLY ASSESSED FOR HAVING DERIVED TAXABLE I NCOME FROM ASSESSMENT YEAR 2003-04 ONWARDS. THIS CLINCHING FACT HAS NOWHE RE BEEN TAKEN NOTE OF IN THE LOWER AUTHORITIES RESPECTIVE FINDINGS. COMING TOO QUANTIFICATION OF IMPUGNED SUM, WE ARE INFORMED THAT THE SAID FAMILY MEMBERS HAD ALSO BEEN ASSESSED U/S 153C PROCEEDINGS CULMINATING IN VARIOU S ADDITION(S) AS WELL. WE THEREFORE ARE OF THE VIEW THAT THE IMPUGNED ADDITIO N CANNOT BE SUSTAINED FOR THIS PRECISE REASON ALONE. THE SAME IS DIRECTED TO BE DELETED. NECESSARY COMPUTATION SHALL FOLLOW AS PER LAW. 5. THE ASSESSEES FIFTH SUBSTANTIVE GRIEVANCE IS TH AT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS ADDING O F LIC PREMIUM OF RS.1.50 LAKHS WHEREAS THE SUM OF RS.1 LAKH HAD BEEN DEPOSIT ED IN MARCH 2007 IT(SS)A NO.16-17/RAN/2015 A.YS. 2008-09 & 2009-10 SRI DEONIS KIRO VS. DCIT CC-3, RANCHI PAGE 3 (ASSESSMENT YEAR 2008-09) AND REMAINING SUM OF RS.5 0,000/- PERTAINED TO ASSESSEES WIFE / FAMILY MEMBERS HAVING THEIR RESPE CTIVE SOURCE(S) OF INCOME. WE THEREFORE HOLD THAT SINCE THE FORMER SUM OF RS.1 ,00,000/- PERTAINS TO PRECEDING ASSESSMENT YEAR (2007-08) SINCE DEPOSITED IN MARCH, 2007, THE SAME DESERVES TO BE DELETED ON THIS SCORE ALONE. TH E LATTER COMPONENT OF RS.50,000/- IS ALSO DELETED IN VIEW OF OUR DISCUSSI ON QUA THE PRECEDING ISSUE THAT THE ASSESSEES FAMILY MEMBER(S) HAVE BEEN THEM SELVES ASSESSED AS INDEPENDENT ASSESSEES. THE FIFTH SUBSTANTIVE GROUND SUCCEEDS THEREFORE. 6. THE ASSESSEES SIXTH SUBSTANTIVE GRIEVANCE SEEKS TO DELETE ONE THIRD OF THE UNEXPLAINED INVESTMENT IN HOUSE PROPERTY ADDITI ON OF RS.14,99,165/- SUSTAINED BY THE CIT(A) AS AGAINST THE FULL SUM ADD ED IN THE COURSE OF ASSESSMENT ALLEGING HIM TO HAVE INVESTED IN HOUSE P ROPERTY IN THE NAME OF HIS WIFE, MOTHER AND BROTHERS WIFE. THERE IS NO DISPUT E THAT THE CIT(A) HAS RESTRICTED THE IMPUGNED ADDITION QUA INVESTMENT IN WIFES NAME ONLY. WE NOTICE SINCE THE DEPARTMENT HAS NOT MADE EVEN PROTE CTIVE ADDITION IN ASSESSEES WIFES NAME SEPARATELY (SUPRA), THE SAME LOGIC DESERVES TO BE FOLLOWED QUA THIS ISSUE AS WELL. WE THEREFORE DIRECT THE ASSESS ING OFFICER TO DELETE THE IMPUGNED ADDITION PERTAINING. 7. THE ASSESSEES EIGHTH GROUND SEEKS TO REVERSE BO TH THE LOWER AUTHORITIES ACTION ADDING OF RS.3,49,170/- AND R.2, 69,549/- IN THE NAMES OF SMT.HEMLATA KIRO ( WIFE ) AND SRI AUGUSTINE KIRO ( BROTHER ); RESPECTIVELY IN HIS HANDS. WE NOTICE WITH THE ABLE ASSISTANCE OF BOTH T HE PARTIES THAT THIS CO- ORDINATE BENCH(ES) FROM ASSESSMENT YEAR 2003-04 ONW ARDS HOLD THAT SUCH SUBSTANTIVE SUMS OUGHT NOT TO HAVE BEEN ADDED IN TH E ASSESSEES CASE SINCE BOTH THE SAID ASSESSEES ARE ASSESSED SEPARATELY. WE ADOPT THE VERY REASONING AS WELL AND DIRECTING THE ASSESSING OFFIC ER TO DELETE BOTH THESE ADDITIONS. THIS ASSESSEES APPEAL IT(SS)A NO. 16/RA N/2015 IS PARTLY ALLOWED IN ABOVE TERMS. IT(SS)A NO.17/RAN/2015 FOR AY 2009-10 . 8. THE ASSESSEES SIXTH SUBSTANTIVE GROUND CHALLENG ES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION MAKING SEC.69 UNEXPLA INED INVESTMENT ADDITION IN IT(SS)A NO.16-17/RAN/2015 A.YS. 2008-09 & 2009-10 SRI DEONIS KIRO VS. DCIT CC-3, RANCHI PAGE 4 HOUSE PROPERTY PURCHASED FOR RS.75 LAKHS; IN HIS HA NDS. WE NOTICE QUA THE INSTANT ISSUE AS WELL THAT THE HOUSE PROPERTY CONCE RNED STOOD PURCHASED NOT ASSESSEES BUT HIS FAMILY MEMBERS NAMES ONLY. WE T HUS ADOPT THE FOREGOING DETAILED REASONING MUTATIS MUTANDIS AND HOLD THAT THE IMPUGNED ALLEGED UNEXPLAINED INVESTMENT OF RS.57,00,000/- IS NOT SUS TAINABLE. THE SAME IS DIRECTED TO BE DELETED. 9. WE PROCEED FURTHER FOR NOTICE IN THE LIGHT OF A SSESSEES SEVENTH SUBSTANTIVE GROUND THAT THERE IS A SEIZED DOCUMENT DK-2 REVEALING COST OF RENOVATION ETC. AMOUNTING TO RS.18 LAKH. MR. PODDAR VEHEMENTLY CONTENDED THAT THIS DOCUMENT MERELY MENTIONS KIRO SAHIB THA N THE ASSESSEES NAME AS DEONIS KIRO AND THEREFORE, THE SAME FORMS A MERE D AMP DOCUMENT LIABLE TO BE IGNORED. WE FIND NO FORCE IN THE FOREGOING PLEA. WE MAKE IT CLEAR THAT THIS DOCUMENT VERY WELL CONFIRMS TO ASSESSEES LATTER NA ME KIRO ALONGWITH THE DETAILS OF RENOVATION OF RS.18 LAKHS SEC.292C(1) OF THE ACT ENVISAGES PROVISIONS THAT SUCH A MATERIAL BELONGS TO THE SEAR CHED PERSONS (CLAUSE IS ITS CONTENTS ARE TRUE (CLAUSE-II); RESPECTIVELY. 10. LEARNED COUNSELS LAST PLEA IS THAT THE ASSESSI NG OFFICER HAS NOWHERE MADE ANY DETAILED DISCUSSION REGARDING DK-2 IN IS SUE. LEARNED CIT-DR AT THIS STAGE TOOK US TO THE CIT(A)S ORDER IN PAGE-15 FIRST PARA THAT THE SAME HAS BEEN CONSIDERED IN LOWER APPELLATE DISCUSSION BY AN AUTHORITY HAVING CO- TERMINUS POWERS. WE THEREFORE CONCLUDE THAT THE ASS ESSEE IS ENTITLED TO RELIEF OF RS.57 LAKHS ONLY SINCE THE REMAINING SUM OF RS.1 8 LAKHS IS BASED ON A SEIZED DOCUMENT FOUND AND DURING THE COURSE OF SEAR CH FROM HIS PREMISES ONLY. 11. MR. PODDAR AT THIS STAGE POINTS OUT THAT NEITHE R OF THE LOWER AUTHORITIES HAS GIVEN THE EXACT ACCOUNT OF SUM INVOLVED IN DK- 2. THE REVENUE IS FAIR ENOUGH IN NOT DISPUTING THE INSTANT QUANTIFICATION PLEA. WE THEREFORE DIRECT THE ASSESSING OFFICER TO ADD THE CORRESPONDING SUM IS DK-2 AS ASSESSEES UNEXPLAINED INVESTMENT IN RENOVATION OF THE HOUSE P ROPERTY AND FINALIZE NECESSARY CONSEQUENTIAL PROCEEDINGS. THE ASSESSEE G ETS PART RELIEF TO THE TUNE OF RS.57 LAKHS THEREFORE. IT(SS)A NO.16-17/RAN/2015 A.YS. 2008-09 & 2009-10 SRI DEONIS KIRO VS. DCIT CC-3, RANCHI PAGE 5 12. THE ASSESSEES TENTH SUBSTANTIVE GRIEVANCE IS T HAT THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN ASSESSING HIS WIF ES AND BROTHERS INCOME IN HIS HANDS WHEREAS HE HAS ALREADY SUCCEEDED ON THE V ERY ISSUE BEFORE THE TRIBUNAL IN ASSESSMENT YEAR 2003-04 TO 2007-08 AND 2008-09 AS PER OUR FOREGOING DETAILED DISCUSSION. WE THUS ADOPT THE SA ID DETAILED REASONING MUTATIS MUTANDIS AND DIRECT THE ASSESSING OFFICER T O DELETE THESE TWO ADDITION(S) MADE IN ASSESSEES HANDS. 13. COMING TO ASSESSEES ELEVENTH SUBSTANTIVE GRIEV ANCE CHALLENGING UNEXPLAINED INVESTMENT IN BANK ACCOUNT OF RS.6,60,2 13/-, WE NOTICE THAT HIS SHARE THEREIN IS ONLY RS.38,237/- WHEREAS REST OF T HE INVESTMENTS HAVE BEEN MADE IN HIS FAMILY MEMBERS WHO HAVE ALREADY ASSESSE D TO TAX INDEPENDENTLY. WE THEREFORE ADOPT OUR FOREGOING DETAILED DISCUSSIO N AND RESTRICT THE IMPUGNED ADDITIONS TO RS.38,237/- ONLY. THE ASSESSE E GETS PART RELIEF. 14. THIS ASSESSEES TWO APPEALS IT(SS)A NO. 16 & 17 /RAN/2015 ARE PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT AT THE CLOSE OF HEARING ON MONDAY 2 ND MARCH, 2020. SD/- SD/- ( ) ($% ) (DR. A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) RANCHI, *DKP &- 02 / 03 /20 20 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE-SRI DEONIS KIRO MERRY HOUSE SHUKLA COLONY HINOO, RANCHI-834002 2. /REVENUE-DCIT, CENTRAL CIRCLE-3,RANCHI 3. 1 3 / CONCERNED CIT RANCHI 4. 3- / CIT (A) RANCHI 5. 6 %%1, 1, / DR, ITAT, RANCHI 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR.PS, (ON TOUR), RANCHI